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Cities Tap Markets for Infrastructure Funds
9 Mar
Summary
- Municipalities encouraged to use capital markets for infrastructure funding.
- Nashik Municipal Corporation listed green bond on Monday.
- Central government increased bond issuance limit to ₹1,000 crore.
Municipal corporations should increasingly utilize capital markets for financing urban infrastructure, according to Chief Minister Devendra Fadnavis. He spoke at the National Stock Exchange on Monday during the listing of the Nashik Municipal Corporation's green bond. Fadnavis encouraged urban local bodies to mobilize resources through municipal bonds instead of relying solely on government funding.
The Central government has actively promoted municipal bond issuances, initially allowing up to ₹200 crore and later increasing the limit to ₹1,000 crore with enhanced incentive support. These funds are crucial for critical civic infrastructure like water supply networks. The Nashik bond proceeds will specifically fund water supply projects.
Fadnavis also suggested that smaller municipal corporations could collectively issue bonds to benefit from incentives and strengthen their infrastructure funding. He called for innovative funding mechanisms to improve cities' financial capacity and accelerate urban development.
